On 1st January 2021 Great Britain left the EU, and is no longer part of the European single market.
Dealers in the United Kingdom (England, Scotland & Wales)
All sales of goods to EU countries are now Exports and all purchases of goods from EU countries are now Imports.
Dealers in Northern IrelandÂ
The Northern Ireland Protocol allows Northern Irish companies unfettered access to the UK markets along with the ability to trade goods with the EU as before.
The Northern Ireland Protocol – GOV.UK (www.gov.uk)
What Tax codes to use
Sage has compiled a helpsheet to show how to process transactions with the EU post Brexit.
They recommend that businesses which continue to purchase and sell to businesses in the EU should update their Sage50 Accounts to version 27.1 or above.
In version 27.1 Sage have created new Tax codes ( T15 -T19), for more details see the link below.
Brexit – Tax codes – before and after 1 January 2021 – UK only (sage.com)
These new tax codes have also been setup in DragonDMS.
T18 – Import of Goods – Postponed VAT Accounting
How T18 transactions post to Sage depends on which version of Sage50 Accounts you are running.
If you are on version 27.1 or later then all of the notional VAT will be posted when you integrate.
If you are not on this version the T18 transaction is posted to Sage as below,
At the end of the Sage integration a message will be displayed advising you to create the additional transactions manually.
Here is the Sage article that explains how to do it:-